Hobby expansion study raises doubts by council

Houston City Council members heard from representatives of United Continental Holdings Inc. and Southwest Airlines Co. on April 16 as the war over Houston’s skies continues.

A council chamber gallery that is usually vacant was packed with operatives from both airlines, which have enlisted lobbyists, former city officials, attorneys and public relations professionals to make their case to the 17-member council. Monday's hearing suggested that United's efforts have gained more traction, the Houston Chronicle reports.

Council members expressed skepticism and hostility toward a study done by a consultant that said if Hobby is made into an international airport it would be an economic boon for Houston, the Houston Chronicle reports.

The study, which cost $110,000 and was done over two months, was criticized by council members, reports the Houston Chronicle. Council members complained that the numbers in the study strained credulity, among other complaints, reports the Chronicle.

Dallas-based Southwest (NYSE: LUV) wants to build a new international concourse at Hobby so it can schedule flights to Latin America. The airline says it will fund the estimated $100 million concourse, which would include a Federal Inspection Facility.

United Airlines, which has through its hub at Bush Intercontinental a virtual lock on Latin American routes from Houston, has argued that Hobby expansion will harm the local economy and cost 1,300 jobs at Bush.

United is working up its own study on the impact of an international Hobby. The two airlines are scheduled to square off in presentations before council on May 8.